Dried corn distillers grains with solubles (DDGS) can partially replace grains and forages in diets for ruminants. The objective of this research was to evaluate the effect of replacing grains and soybean meal with DDGS (0%, 15%, 30% and 45%) in the diet of lambs. Thirty-two native lambs were used (initial bodyweight = 28.6 ± 2.19 kg) in a completely randomized design. Initial body weight was a co-variable, and the means were compared with the Tukey test. The dry matter intake was significantly higher in DDGS containing diet than in the control treatment. The daily weight gain was higher in the diets with 15% of DDGS compared with the control. Dry matter digestibility was lower by 7% with 45% of DDGS. The hot and cold carcass weights were significantly higher by 8% in DDGS treatments compared to the control. The inclusion of increasing levels of DDGS in the diet of fattening lambs increased their dry matter intake, improved carcass weight, and did not adversely affect carcass characteristics.